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[h=2]Rebuttal to MTI’s reply on foreign manpower[/h]
November 6th, 2012 |
Author: Contributions
With reference to the article “Singapore’s
Foreigner Influx: Facts and Myths” (TR Emeritus, Nov 3) and the
TR Editorial “MTI:
We are careful in bringing in foreign manpower” (Oct 7), I would like to
make some remarks to MTI’s reply.
MTI: “Our experience and empirical data from developed countries
show that economic growth is positively related to wage growth. The benefits of
economic growth have filtered down to all groups, including lower-income
households. From 2006 to last year, the 20th percentile saw real household
income growth of 2.2 per cent per annum”
Real household income vs worker’s wages
Real household income for lower-income households
may have grown in recent years because of a higher number of people working in
each household, as more people may need to work in the household in order to
survive – Why?
Because workers’ (not household) real median wage growth may have
been negative over the last 5 years or so (negative in 2011, 2009, 2008, + 0.5%
in 2010).
Longest work hours per week
Another reason why real household income appears to have increased
is because we work the longest hours in the world.
Basic hourly wage vs gross wages
Yet the basic per hour wage has been declining. For example, to
about $4 for cleaners, security guards, traffic wardens, etc. They earn more
because they typically work 12 hours a day for 6 days a week.
Economic growth = Wage growth?
Singapore may be the exception rather than the rule, as to the
experience of developed countries – economic growth in Singapore may not really
have translated into real wage growth on a relative basis.
MTI: “The average unemployment rate for lower-educated residents
also remained low: 3.4 per cent over that period, even as foreign employment
grew at a faster rate. Economic growth is needed for the opportunities and
benefits a vibrant economy brings. It will also provide us with the resources to
assist lower-income households”
Unemployment rate
I understand that the unemployment rate does not include those who
have given up looking for work after 6 months or more.
Also, if you include those on various training schemes which e2i , WDA, etc,
will pay most of the fees to encourage you to attend – who may not counted as
unemployed, discouraged workers (persons outside the labour force who were not
actively looking for a job because they believed their job search would not
yield results), some of the 153,600 or 14.4% of economically inactive residents
in 2011 who intended to look for a job within the next two years of whom 110,800
had work experience, the ‘under-employed’ (those who are employed, but may only
be able to get a part-time job, short-term contract, a much lower paying job,
free-lancing other than as a matter of choice, etc, the number of ‘actual’
unemployed may be higher.
What “opportunities and benefits a vibrant economy brings” are we talking
about, when real wage growth may have been negative against the relentless rise
of HDB prices, electricity tariff, healthcare costs, etc, which arguably hits
the lower-income most.
.
Leong Sze Hian
Leong Sze Hian is the Past President of the Society of Financial Service
Professionals, an alumnus of Harvard University, Wharton Fellow, SEACeM Fellow
and an author of 4 books. He is frequently quoted in the media. He has also been
invited to speak more than 100 times in 25 countries on 5 continents. He has
served as Honorary Consul of Jamaica, Chairman of the Institute of
Administrative Management, and founding advisor to the Financial Planning
Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and
13 professional qualifications. He blogs at http://www.leongszehian.com.
Foreigner Influx: Facts and Myths” (TR Emeritus, Nov 3) and the
TR Editorial “MTI:
We are careful in bringing in foreign manpower” (Oct 7), I would like to
make some remarks to MTI’s reply.
MTI: “Our experience and empirical data from developed countries
show that economic growth is positively related to wage growth. The benefits of
economic growth have filtered down to all groups, including lower-income
households. From 2006 to last year, the 20th percentile saw real household
income growth of 2.2 per cent per annum”
Real household income vs worker’s wages
Real household income for lower-income households
may have grown in recent years because of a higher number of people working in
each household, as more people may need to work in the household in order to
survive – Why?
Because workers’ (not household) real median wage growth may have
been negative over the last 5 years or so (negative in 2011, 2009, 2008, + 0.5%
in 2010).
Longest work hours per week
Another reason why real household income appears to have increased
is because we work the longest hours in the world.
Basic hourly wage vs gross wages
Yet the basic per hour wage has been declining. For example, to
about $4 for cleaners, security guards, traffic wardens, etc. They earn more
because they typically work 12 hours a day for 6 days a week.
Economic growth = Wage growth?
Singapore may be the exception rather than the rule, as to the
experience of developed countries – economic growth in Singapore may not really
have translated into real wage growth on a relative basis.
MTI: “The average unemployment rate for lower-educated residents
also remained low: 3.4 per cent over that period, even as foreign employment
grew at a faster rate. Economic growth is needed for the opportunities and
benefits a vibrant economy brings. It will also provide us with the resources to
assist lower-income households”
Unemployment rate
I understand that the unemployment rate does not include those who
have given up looking for work after 6 months or more.
Also, if you include those on various training schemes which e2i , WDA, etc,
will pay most of the fees to encourage you to attend – who may not counted as
unemployed, discouraged workers (persons outside the labour force who were not
actively looking for a job because they believed their job search would not
yield results), some of the 153,600 or 14.4% of economically inactive residents
in 2011 who intended to look for a job within the next two years of whom 110,800
had work experience, the ‘under-employed’ (those who are employed, but may only
be able to get a part-time job, short-term contract, a much lower paying job,
free-lancing other than as a matter of choice, etc, the number of ‘actual’
unemployed may be higher.
What “opportunities and benefits a vibrant economy brings” are we talking
about, when real wage growth may have been negative against the relentless rise
of HDB prices, electricity tariff, healthcare costs, etc, which arguably hits
the lower-income most.
.
Leong Sze Hian
Leong Sze Hian is the Past President of the Society of Financial Service
Professionals, an alumnus of Harvard University, Wharton Fellow, SEACeM Fellow
and an author of 4 books. He is frequently quoted in the media. He has also been
invited to speak more than 100 times in 25 countries on 5 continents. He has
served as Honorary Consul of Jamaica, Chairman of the Institute of
Administrative Management, and founding advisor to the Financial Planning
Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and
13 professional qualifications. He blogs at http://www.leongszehian.com.
